Monday, March 29, 2010
Tips to improve your credit score
The following is a guest post provided by Roger Moore with Credit Magic.
Your credit score is vital as it implies how responsible you are financially. It will determine how you are to be treated by the lenders etc. Basically, your credit score is made up of the following components –
1. The duration for which you have had credit
2. Your payment history
3. Credit you have used against available credit
4. Credit mix or variety of credit you carry
5. Credit report inquiries
Know your rights:
Prior to starting off, you need to be acquainted with one of the most important points. And that is to know your rights. If you are aware of them, you can use them as a means of defending yourself in case you have been wrongly treated. It will also help you to assess whether debt collectors are doing justice to you.
Pull out credit reports frequently:
You are entitled to get a free copy of your credit report once in every 12 months from the 3 credit reporting agencies. So, pull out credit reports from time to time even if that means you have to shell out some cash. This will enable you to keep close watch on your credit score.
Check for anomalies:
If you find any inaccurate information in the credit report, report the same to the CRA or credit reporting agencies. The creditor has to verify the information within 30 to 45 days. If creditors fail to verify, the information gets removed from your credit report. Entering faulty information in the credit report affects your credit score adversely.
Improve your financial habits and your credit score in the process
Make sure you remain current with payment of bills. Take control of your finances which includes –
• Regular payments
• Budgeting your finances
• Curbing unnecessary expenses
• Keeping track of finances
• Judicious use of plastic cards etc.
Having a good credit score will enable you to enjoy the different financial benefits offered by the financial markets. Ranging from employment, buying insurance to renting an apartment, you will have an edge over others if your credit score is sound.
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